Biden's plans for addressing housing affordability will make it worse, Pence group warns

The nonprofit political advocacy group founded by former Vice President Mike Pence is warning congressional lawmakers that President Biden's plans for the federal government to intervene in the housing market will only escalate the problem to a scale not seen since the Great Recession.

Pence's organization, Advancing American Freedom (AAF), issued a policy memo to lawmakers and their staff on Friday, claiming the president's proposals would "kill" the American dream, and result in a "repeat" of the 2008 crisis.

The memo pointed to the Biden administration's proposal out of Freddie Mac that would guarantee certain second mortgages, and said if the rule comes to fruition it would mean the government-backed entity would take on another $3 trillion in liabilities. AAF claims such a move would only fuel inflation further, and cause increased instability in the mortgage market.

The policy group also warned against the administration's proposal to weaken credit standards for borrowers, and the president's plan – outlined in his State of the Union address – to offer $10,000 subsidies for first-time homebuyers and starter-home sellers.

MIKE PENCE ACCUSES BIDEN OF IMPEACHMENT HYPOCRISY AMID ISRAEL ARMS THREAT

AAF noted that the affordable housing crisis in the U.S. is a supply-side issue due to the shortage of homes in the U.S., and argues Biden's approach would only feed demand, making the problem worse.

AAF, which was launched for the purpose of defending the accomplishments of the Trump-Pence administration, is urging conservatives in Congress to utilize the Congressional Review Act to stop the Biden administration's proposals by using the power of the purse, and to "get the government out of the mortgage business altogether" by ending the conservatorship of Fannie Mae and Freddie Mac.

THE COST OF BUYING A HOUSE HIT ANOTHER RECORD HIGH AS MORTGAGE RATES SPIKE AGAIN

The group argues that the federal government could increase the supply of housing by returning surplus federal lands back to the states, and eliminate agencies like the EPA, which it says is driving up the cost of housing due to burdensome environmental regulations that hinder building.

"President Biden and the Democrats should get out of the mortgage business before America barrels headlong into a repeat of the 2008 housing crisis," AAF Executive Director Paul Teller told FOX Business. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

"This is a supply problem, not a demand problem, but what Biden is suggesting will just drive up demand, spiraling us into a repeat of 2008," he added. "Every time the swamp weighs in on these issues, it’s the American people who suffer."

When reached for comment by FOX Business, White House spokesperson Jeremy M. Edwards said in a statement that "Under the leadership of President Biden, we have already taken action to lower housing costs and increase the housing supply, which has helped lead to a record 1.7 million housing units currently under construction, and there have been more apartments under construction each year during the Biden-Harris Administration than under any President since Reagan."

"Still, the President knows that more must be done to help American families who are still struggling with the cost of housing," Edwards continued. "That’s why he is calling on Congress to pass his housing plan, which some experts are calling the ‘most consequential’  housing plan in more than 50 years and would build more than two million homes, provide a $10,000 tax credit for first-time homebuyers, and crack down on corporate actions that rip off renters."

He added, "Republicans in Congress should pass the President’s plans to lower housing costs, rather than trying to cut taxes for the wealthy and large corporations."